Banking - Shadow and Real

Tyler Cowen points to a new NBER study
that concludes that the shadow banking system is misnamed: it's part of
the real banking system and at the heart of the financial crisis:

The 'shadow banking system' at the heart of the current
credit crisis is, in fact, a real banking system - and is vulnerable to
a banking panic. Indeed, the events starting in August 2007 are a
banking panic.

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